Why it pays to get ‘passionate’ about luxury collectibles

The Vin-X team recently enjoyed an action-packed weekend at Chateau Impney’s annual Hill Climb.  This fantastic motorsport event showcased over 200 competitors racing and demonstrating some extremely rare and valuable cars, whose collective value was whispered to be over £750million. With displays and demonstrations of iconic vintage and the latest super cars, it was an automotive lovers ‘dream weekend’.

CHATEAU IMPNEY HILL CLIMB 2018

CHATEAU IMPNEY HILL CLIMB 2018

This is our second year sponsoring the Impney Hill Climb, and once again we were bowled over by the many iconic cars competing and their passionate owners, and we can relate this passion to the wine makers and owners of the great vineyards of the world and the wines they produce. We believe strongly that collectibles like classic cars and fine wine are highly compelling in terms of their investment performance and the tax treatment they enjoy, but more than that they are assets owners can really enjoy and get passionate about.

Following this theme watch Nicki Shield’s Hill Climb 2018 interview with Vin-X’s Bordeaux Director  Renaud Ruer and Katie Souter via this link: View here

Channel 4OD and Motors TV UK are running a special programme on the 2018 Chateau Impney Hill Climb until mid-August including the following dates/times: 

WEDS 01/08/2018 03:30 
SUN 05/08/2018 18:30 
TUES 07/08/2018 14:00 
FRI 10/08/2018 12:15

The record-breaking sale of an exceptionally rare Ferrari  GTO for $70million (£52million) at the end of May this year put the spotlight again on luxury collectibles, or ‘passion assets’  and their potential to provide extraordinary returns.

Knight Frank’s Wealth Report reviews the performance of luxury collectibles every year and fine wine, classic cars and fine art are generally the top 3 performers but land mark sales can influence trends over the short-term. This was also illustrated by the sale of Leonardo da Vinci’s great masterpiece, Salvator Mundi in November last year for $450million. This and a second fine art sale of over $100million hiked fine art performance to the top of the Knight Frank Luxury Index ranking for the 12 months of 2017.

Over the long term however of 5 to 10 years fine wine and classic cars have consistently delivered higher average returns and since 1995, fine wine performance outstrips all luxury collectibles, gold and FTSE on data sourced by Liv-ex. 

Ultimately, the entry point for fine wine can be significantly more affordable than other luxury assets, along with the storage, security and maintenance costs (of which there are no ongoing requirements to tinker or pay for a significant team to). The percentage returns over the long term are impressive, outperforming other assets and ultimately owners can get a lot of enjoyment from their ‘passion’ investments

For more information on alternative assets and the performance of fine wine call us now on 0203 384 2262.